Aston Chemical Company Business Growth and Development Strategies

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Contents
Introduction...................................................................................................................... 2
Porter’s five forces analysis..........................................................................................3
PESTEL analysis of Aston chemical company.............................................................4
SWOT analysis of Aston chemical company....................................................................5
Ansoff matrix.................................................................................................................6
Sources for funding or financing business....................................................................8
Conclusion..................................................................................................................... 14
References.....................................................................................................................15

Introduction
This assignment is all about knowing how a small business can grow and develop. For
this firstly a company named as Aston chemicals is going to analysis on the basis of
poster’s generic model and on the basis of PESTEL this involves analyzing a business
on the basis of political, economic, social, technology, legal, environment factors. This
analysis helps in knowing the strength, weakness of the organization. Also helps in
knowing which factors can be used to develop the business with which can provide
more opportunities in order to develop more economy for the organization. After this a
business plan of a company is going to be proposed in which all strengths, weakness,
opportunities, and threats of the business are going to be analyzed. The strategies to
develop a small business is discussed which helps in knowing which strategy can be
used at the time of risk with great potential.

P1 Analyse key considerations for evaluating growth opportunities and justify
these considerations within an organizational context.
Porter’s five forces analysis
This is a tool which helps in making analysis of business competition. This analysis
helps the organization to know what the organization is lacking internally. By doing the
analysis with porters five force model the organization comes to know about their
capabilities and how the organization can serve their customers by making more profit.
The manager of Aston chemical company can understand its competitive factors by
using porters five analysis. The analysis of competitive forces will help Aston chemical
company to enhance development strategies to gain more profit for long period of time.
Overview of ASTON chemical company
The organization named as ASTON chemicals is one of the leading companies for the
distribution of chemicals. This company is in the town Aylesbury. From the last few
years this company is expanding their business and performing according to the wish of
the customers. The company has made its good reputation in the stock exchange
market.
Porters five forces for the Aston chemical company
The five forces which are include in the porters five forces analyses are as follows-
 Threat due to the new entrants
 Bargaining by the suppliers
 Bargaining by the buyers
 The risk created by alternate products
 challenge among the present competition
By using this model Aston chemical company can analysis their present competition
and can plan strategies to obtain sustainable advantages to drive more opportunities
which are profitable for the organization.

1. Threat due to the new entrants- the new entrants are stepping in the chemical
industry by implementing new innovative ideas of distribution. The competitors of
Aston chemicals are making strategies to reduce the value of company and
consumers consumed by company. The strategies which commonly followed by
competitor of Aston chemical company involves giving less price to consumers,
giving new value to the product, by giving more importance to the customers
services. It is required by Aston chemical company to take some steps in order to
maintain profitability and economic growth of the company. The company can
retain its market value by adding some innovative product and creativity in the
process of delivery. This will bring new customers and also help in attaching old
one to the organization.
2. Bargaining by the suppliers- there are various suppliers through which Aston
Company can buy raw materials. The suppliers can reduce their margins and can
make profit by market. The bargaining behavior of suppliers can reduce the
profitability of Aston Company. Aston Company can overcome from this by
developing efficient and dedicated supply chain with suppliers.
3. Bargaining by the buyers- the consumers want to buy product or services at
cheap prices. This can affect the profitability of Aston chemical company. The
company can overcome from this by building better relationships with the
customers.
4. The risk created by alternate products- the Aston chemical company suffers from
loss in profit if consumers get the similar product or services as like Aston
Company. The company can recover from this if they can produce and services
to satisfy consumers.
5. Challenge among the present competition- due the more competition in the
market Aston Company will need to decrease their price this will affect the
economic growth of company.
PESTEL analysis of Aston chemical company
Political factor
 Collision of chemical industry on the economic development of country.

 Stability legal framework of country
 Knowing the steps of pricing system favorable or not for the Aston chemical
company
 Corruption level in the country
Economic factors
 The economic system followed by the country.
 Process of business follow in the country support the Aston company or not
 Literacy level of citizens.
 Labor’s cost
Social factor
 Behavior of the society towards Aston chemical company
 Countries culture where Aston company wants to globalize business
 The citizens of country educated or not.
Technological factor
 New innovations that can enhance the productivity
 Aston chemical company can also use new technological development to make
process of distribution more innovative and faster.
Environmental factors
 Legal framework of environmental laws can help Aston company to know
whether they can throw their residue products in the water or not.
 The changes occurring in weather or climate are according to the Aston chemical
company or not.
Legal factors
 Aston company needs to analysis the laws of the country supports chemical
industry or not.

 Safety laws regarding employees who are going to be employed in Aston
chemical company
SWOT analysis of Aston chemical company
It is a tool which is used to plan strategy. The Aston Company has made this analysis
on the basis of company’s situation. This involves the analysis of strengths, weakness,
opportunities, and threats depending on the present situation of company.
Strength of Aston Company
 Capability of providing new products and services with new innovation and
creativity.
 The Aston Company has reliable supply chain for the raw materials.
 The distribution network of Aston chemical is strong. The process of distribution
occurs mostly in the majority of potential market.
 The company has capability of making new strategies for the growth of
organization
 The portfolio of Aston chemical company has proved that the company is
capable of expanding its business with the range of new products and services.
 Aston Company has executed many projects with the good return on the capital
expenditure.
Weakness of Aston Company
 Aston Company does not have enough money to invest on the new technologies.
If the company puts money on technology then it is useful in enhancing broad
processes.
 Rate of attrition is high it means Aston chemical company spends more money
on the training of employees as compare to their competitors.
 The company lacks in the marketing strategies of the product.
 The financial strategies are not planed properly
Opportunities of Aston Company

 The government agreement is enabling Aston chemical to come up in new
markets.
 Aston Company has opportunity to make investments on the product due to the
free flow of cash and stability. The more cash allows company to invest on the
new technologies also.
 Aston Company is stable as the rate of inflation is low.
 The trends which are coming in behavior of consumer are enabling Aston
Company to produce more new products in the new open market.
Threats of Aston Company
 Different types of fluctuations are created by the lawsuits faced by the Aston
Company for the standardization of the product.
 The laws of liability are different in every country this creates changes in the
policies according to the market.
 Change in the behavior of customers.
 Demand of more pay by the employees.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
Ansoff matrix
The analyses made by Ansoff matrix helps in the expansion of product and the market
of the company. This matrix helps in making plan and strategies for the growth of Aston
chemical company. The analyses of Aston chemical company made by ansoff matrix is
based on the following four factors-

 Market penetration- in this Aston chemical company aims to attract new
customers by new strategies of marketing the product more. The strategies may
involve decrease in the price of product or service, making more efforts in the
distribution system.
 Product development-this involves that Aston chemical needs to develop new
products and services according to the demand of customers in the market. For
this the company can form a research and development team which can come
up by giving new innovative and creative ideas for new products.
 Market development- this analyses involves the development of Aston chemical
company by entering in the new market. The market can be local or international.
If the Aston chemical company enters into the new market then they can serve
their products and services to new demographics.
 Diversification- when Aston chemical company enters in the new market then
some risks will also come with it. Diversification helps in mitigating those risks.
Effective option for the growth of Aston chemical company
The Aston chemical company can make its economic growth by implementing the
following policies in its business process
1. Policy of demand side- by implementing this policy Aston Company can make
an increment in the aggregate demand. This policy is more applicable when the
recession is below the growth. This policy can help Aston chemical company to
make economic growth when output gap is negative.
2. Quantitative easing- this policy helps in increasing the money supply to keep
the rate of bonds low. For this Aston chemical company will buy new bonds. This
implementation will result in boosting up the economic growth of Aston chemical
company by lowering the rates of interest.

Lo2
P3 Assess the potential sources of funding available to businesses and discuss
benefits and drawbacks of each source.
Sources for funding or financing business
 Investment by the owner- in this investment is made by the owner of the
organization or by the business partners. It not only requires cash in hand it also
requires holdings of stocks also. This is useful for funding because own funding
means that you are free to use it without any tension. No need to pay interest,
time is not going to be waste in convincing strangers to invest on the business.
But on the other it is also risky because by making own investment owner is
putting its savings on risk, putting future plans on risks.
 Investment by bank and investors- the firms or individuals who are wealthy
enough are also another good source for funding. The investment by these
sources are beneficial because if the investment made by them then the invested
amount can cover up almost all the needs of organization or business. The
investments made by bank and investors are capable of making commitment in
the business. On the other investment by the investors makes the business
dependent on the investors, the organization is no longer capable of making
independent decisions. The possibility of investment by bank depends on the
cash flow the business and also on the projection of business. After analyzing
these factor banks approve loan.
 Funding by crowd source- this method of funding was recently discovered this
involves investment made by large number of people. By this method
organization or business gets the fund from small investors. Every investor
contributes the small amount of money. The investments made by this method
are interesting because in this a small eye catchy video is made to attract
investors. This method of investment is also useful for the investors because by
this method investors will also get the return early. On the other side this method
does fulfill all the demands and needs of the business. This type of funding may

not result in getting proper and promising delivery which may result in the failure
of the business publically.
 Funding through internal projects- if the economic growth of business is good
then the funding for the new projects can be made by the internally going on
projects. This is advantageous because the business is already aware of its
internal funds, budget of company. This is also hazardous because the failure in
project will also lose internal funding and savings.
 Assistance by government- this involves taking funding and investments by
government by sharing the idea of business to the government. The investment
by government is beneficial because it helps in getting large amount of funding
and also provides public exposure of business. The disadvantage of using this
method is that it is very hard to take investment by government due to the
competition in market. The business will also need to follow all the complex rules
and regulation made by government in the business process.
Lo-3 Develop a business plan (including financials) and communicate how you
intend scaling up a business
P4
1. Executive summary
The company named as SCOOPY is going to deal as a beverage retailer. This
company is going to use a technology which is new in the food and beverage
industry. The company can provide both hot and cold beverages in the time
efficient way and conveniently. SCOOPY allows its customers to order for
various things like espresso drink, fresh drink and many other beverages like
pizza, burger. The quality of food and beverages is high. Along this SCOPPY
also offers pastries, hot chocolate, other soft drinks.
SCOOPY is going to focus mainly on two markets-
 Daily commuter- in this SCOOPY will focus mainly on those who comes
out to travel like fro shopping, work or for any service or out for drive.

 Captive consumer- in these SCOOPY focuses on the consumers who
comes out mainly for the refreshments or are the part of an integral
environment.
2. Objectives
The company SCOOPY aims to achieve the following objectives within the two
years-
 Ten drive locations and the cafes which can be booked by mobiles.
 Margin of gross up to 50%
 The profit after paying tax up to 20% of the total sale.
3. Mission
 Product mission- the company aims to provide the beverage of finest and
high quality by consuming less time.
 Economic mission-both operation and growth must processes at
profitable rate.
 Community mission- wants the support of community by the involvement
of customers.
4. Keys for the success
The company has decided four keys to achieve success as follows-
 The location must be in visibility, high pattern traffic, or can be access
conveniently.
 Quality of the product. The materials which are going to be used to make
beverages must be fresh, flavored, serving must be premium.
 The employees who are doing the job of server must be friendly,
professional, and cheerful.
 The reputation needs to good by the word mouth of community.
5. Summary of SCOOPY
This company deals in the both cold and hot beverages. It allows its customer to
make order of their choice. Currently the company is owned by Mr. Jone and Mr.
Watson. Both of them intent to share capital. This company plans to provide

membership of sale up to 100 units. The physical features which are required for
the location are as follow-
 Visibility from the road
 Easy to enter
 Establishment should be occurs in the area of retail shops.
6. Products
The company aims to provide products of fine and high quality. The SCOOPY‘s
special featured product involves coffees and blended tea. The company will also
provide products according to the change in the season. Apart from these
beverages the company will also offer Italian sodas, domestic food, teas. The
company will market their product by providing the premium items such as
sweatshirts, coffee mug and many other items.
The completion of SCOOPY will come from the following three sources-
 The coffee house which are nationally wide like starbucks.
 The cafes which are operated locally
Scoopy is different from other because it contributes some of its profit amount for the
sake of community.
7. Technology
The delivery system of SCOOPY is based on the technology which is different
from others and makes the process of delivery convenient and easy for the
clients. With the help of technology SCOOPY is aiming to build mobile cafes also
which can be deployed in the schools, colleges or on the special events.
8. Future products
For the future plans SCOOPY aims to enhance it sale, want to increase the
number of customers and also wishes to fulfill their desires. For this SCOOPY
will provide the seasonal drinks and beverages and some extra flavored
beverages at the time of special occasion. The company is also focusing to look
after the desires of the customers and the changes which a customer wants from
SCOOPY.
9. Analysis of market